On January 1, Year 1, Popa Inc. acquired 100% of the outstanding common shares of Montreal Ltd. for a total cost of $6,700. Coincidently, the carrying amounts of Montreals assets and liabilities were equal to their fair values on this date.

The year 1 financial statements for Popa and Montreal were as follows:

INCOME STATEMENTS
For year ending December 31, Year 1
	Popa			Montreal
Sales	$	13,000		$	4,400
Equity method income		800			0
Total income		13,800			4,400
Cost of goods sold		10,100			2,900
Other expenses		1,400			700
Total expenses		11,500			3,600
Profit	$	2,300		$	800

STATEMENTS OF FINANCIAL POSITION
December 31, Year 11
	Popa			Montreal
Land	$	5,000		$	1,500
Plant and equipment, net		19,200			12,200
Investment in Montreal		7,000
Current assets		3,300			2,700
Total assets	$	34,500		$	16,400
Ordinary shares	$	10,000		$	2,400
Retained earnings		10,600			4,600
Long-term liabilities		8,000			5,500
Current liabilities		5,900			3,900
Total equity and liabilities	$	34,500		$	16,400

Additional Information

• Popa uses the equity method to account for its investment in Montreal.
• Montreal paid dividends of $500 in Year 1.

Required: (a) Prepare consolidated financial statements for Year 1. (Input all values as positive numbers. Leave no cells blank - be certain to enter "0" wherever required.)

Required: (a) Prepare consolidated financial statements for Year 1. (Input all values as positive numbers. Leave no cells blank - be certain to enter "O" wherever required.) \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Popa Inc. } \\ \multicolumn{2}{|c|}{ Consolidated Statement of Financial Position } \\ December 31, Year 1 & \\ \hline Assets & \\ \hline & \\ \hline & \\ \hline Total assets & \\ \hline Liabilities and Equity & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular}